Speaking on the sidelines of the Taiwan Expo here, he said his office received a fax from the environmental regulators yesterday confirming that the project had been given the green light, contingent on 72 conditions laid out for the state.

The project to reclaim the three islands, formally known as the Penang South Reclamation project, will be spread over 17 sq km, with islands covering 9.3, 4.45 and 3.23 sq km, to be reclaimed off the coast of Permatang Damar Laut, near Bayan Lepas, in the south.

The reclaimed land will belong to the Penang government but will be auctioned off to the highest bidders to finance the RM46 billion Penang Transport Master Plan (PTMP).

The PTMP envisions a series of highways, light rail transit lines and other modes of transport to be built over the next 20 to 30 years.

The PTMP will be pursued by SRS Consortium Sdn Bhd, a joint venture between Gamuda Bhd and Penang real estate development firms Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd.

The letter from the Department of Environment (DoE), dated June 25, was faxed to the state secretary’s office at 10am yesterday.

Chow said details of the 72 conditions were likely to be revealed next week.

“The official copy of the approval letter will be sent to us. We will study the contents.

“Just like any other approval granted by DoE, there are conditions. There are 72 conditions. We will follow all the rules,” he said.